Question

QUESTION 8 - 9.3

Patents represent what type of barrier to entry?

	.	Barrier created by government
		Brand loyalty
		Input barrier
		Economies of scale

QUESTION 9 - 9.3

Which of the following is NOT a barrier to entry?

		Diseconomies of scale
		Input barriers
		Economies of scale
		Brand loyalty

QUESTION 10 - 9.3

Suppose there are four firms that produce gluten-free breakfast cereal and each firm has 25% of the market share. What is the HHI for this market?

		500
		1000
		2500
		6250

QUESTION 15 - 10.2

What strategy do cartel members use to coordinate their actions without using a formal agreement?

		Implicit entry deterrence
		Price taking
		Tacit collusion
		Marginal cost pricing

Answer 1

Answer) Patents grants exclusive use of an invented product or process to the inventor. Patents is a form of government created barriers.

Hence option A is the correct answer.

2) Diseconomies of scale is NOT a barrier to entry. Economies of scale is barriers to entry because other firms can't compete with when they have lower cost of production.

Hence option A is the correct answer.

3)

4) Tacit collusion is strategy do cartel members use to coordinate their actions without using a formal agreement. Tacit collusion is strategy that firms do without explicit communication.

Hence option C is the correct answer.

Note : Please like my answer and comment for further clarification, it's urgent.